P&G Reports 20% Profit Rise, Halves Tariff Impact Amid Beauty Sales Boost

Procter & Gamble (P&G) reported strong first-quarter fiscal 2026 results with net sales of $22.39 billion, a 3% year-over-year increase, and adjusted earnings per share (EPS) of $1.99, surpassing Wall Street estimates. The company benefited from robust demand in its beauty and grooming segments, with beauty brand sales rising about 6% organically, driven by premium products like Pantene and Gillette. P&G lowered its annual tariff cost estimate to approximately $400 million after Canada lifted retaliatory tariffs on U.S. goods, helping offset higher costs despite some price hikes in the U.S. to manage tariff impacts. CEO Jon Moeller, who will be succeeded by Shailesh Jejurikar in January, noted the company remains on track amid challenging geopolitical and consumer conditions, maintaining guidance for 1–5% sales growth and 3–9% EPS growth for the fiscal year. Despite economic uncertainties and a broader slowdown in discretionary spending, P&G's strategic pricing, product innovation, and steady demand for essential products contributed to its resilience. Market analysts view P&G positively, highlighting its defensive profile and strong fundamentals in a cautious economic environment.